Morocco - Second Doukkala Irrigation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 6866 PROJECT COMPLETION REPORT MOROCCO DOUKKALA II IRRIGATION PROJECT (LOAN 1416-MOR) June 29, 1987 Project Department Europe, Middle East, and Northern Africa Reg*onal Offige This document has a restficted distribution and may be used by repients only in the performance Of their officisl duties. Its contents may not otherwise be discosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Dirham (DH) DH 1 = US$0.227 WEIGHTS AND MEASURES 1 milimeter (mm) = 0.039 inches (in) 1 meter (m) = 39 inches (in) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) - 2.47 acres (ac) 1 square meter (m2) = 10.76 square feet (ft2) 1 cubic meter (m3) = 35.31 cubic feet (ft3) 1 liter (1) = 0.264 US gallons (gal) 1 hect-liter (hl) = 26.4 US gallons (gal) I kilogram (kg) = 2.206 pounds (lb) 1 metric ton (t) = 2,205.00 pounds (lb) 1 bar = 14.66 lb/square inch (psi) ABBREVIATIONS CMV Development Center/Centre de Mise en Valeur CNCA National Agricultural Credit Bank/Caisse Nationale de Credit Agricole INRA National Institute of Agricultural Research/Institut National de la Recherche Agronomique MARA Ministry of Agriculture and Agrarian Reform/Ministere de l'Agriculture et de la Reforme Agraire ORMVA Regional Agricultural Development Office/Office Regional de Mise en Valeur Agricole ORMVAD Regional Agricultural Development Office for Doukkala/Office Regional de Mise en Valeur Agricole des Doukkala PAGI Large-scale Irrigation Improvement Project (Ln. 2656-MOR)/ Projet d'Amelioration de la Grande Irrigation CPBS Main low-service canal/Canal principal bas-service MMI Mobile sprinkler system/Materiel mobile d'irrigation PAR Project Appraisal Report (1977)/Rapport d'evaluation ex-ante PCR Project Completion Report (1986)/Rapport d'achevement de projet (rapport d'evaluation ex-post) FISCAL YEAR January 1 - December 31 CROP YEAR October 1 - September 30  TME WORLD BANK W.shtlon. D.C. 033 US.A. 06oK a# omuw..Gmwi 0PAMm IVSAhiaUM June 29, 1987 MMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report: Morocco Doukkals II Irrigation Project (Loan 1416-MOR)_ Attached, for Information, is a copy of a report entitled "iProject Completion Report: Morocco Doukkals II Irrigation Project (Loan 1416-MOR)" prepared hy the Borrower's project authority with the assistance of the FAO/World Bank Cooperative Programme (FAO/CP). Under the modified system for project performance auditing, further evaluation of this project by the Operations Evaluation Department has not been made. Attachment |Thibs do_a tha a_ dwkW buX4ksndumay beO by m_st WoaotI On podnxmss of . a _& .oh It aBmy so ev4beddd kw d Bb4*aw  FOR OMCIAL UE ONLY MOROCCO PROJECT COMPLETION REPORT DOUKKALA II IRRIGATION PROJECT (Loan 1416-MOR) TABLE OF CONTENTS Part No. Preface .................................A Basic Data Sheet ..................................{ Evaluation Suxmary .................................. v I. GENERAL I.....****...*****, ............................... 1 ,I. PROJECT OBJECTIVES, ELEMENTS AND PROBLEMS .......... ......... 4 III. PROJECT IMPLEMENTATION *..................................... 6 Area equipped cc .........c. .......... ...** * ** ... 6 Consolidation, lend distribution and ownership .............. 6 Project works 9...........e.... eee.ec.*e. 9 Implementation period of the project works and delays ....... 11 costs and procurement .. .. e.........e.eeeee,eeeee. . 12 Disbursements ............ ................. ................ 16 IV. AGRICULTURAL DEVELOPMENT ..................., ............... 17 Crop rotation, land uae and yields .......................... 17 Agricultural performance ...e..... .................... 20 Livestock development c..........e.... ............... 22 Acceptance rate of irrigation ............................... 23 V. ORGANIZATION AND ANAGEMENT ..e.........c...., e.e.c. ....... 25 Coordination between the impleaenting agencies . ...................... 25 Organization for project implementation ..................... 25 Supervision of construction works ........................... 26 Operation, maintenance and water management ................. 26 Cost recovery .... ..... e....... 32 Disengagement from competing services or those which are commercial in tiature .cc..c.....e.s ece.e..... e.caeceee...cee.. c . 34 Extension and supply of Inputs and services ................. 35 Marketing ..............c....,............ ................. 36 Consultants see.ce.c...c..e.c....e.. cc .......c. 36 Audit .........c...,ee...e.c.... ecce..c...........e.s.......... 36 Performance of the Bank ......... ........................ 36 This document has a estrted disribution and may be used by recipents only in the perfornmace of their offi dudties. Its contents may not otherwis be disclosed without World Bank authoition.  PaRe No. VI. A POSTERIORI ECONOMIC APPRAISAL ........ ..................... 38 Benefits of the project ..................................... 38 Project costs .....* ................................... 41 Economic analysis ..... 41 Farm incomes ......... ............ ........................ ... 41 FIGURES: 1. Rainfall in Doukkala 2. Comparative activity schedule 3. Outline of the 'Trame BI irrigation network 4. ORMVAD organization chart ANNEXESt 1. Estimated costs during evaluation, actual and present costs (in dirhams and in US dollars) 2. Land tenure and farm distribution 3. Agricultural development 4. Comparison of disbursement schedules 5. Comparative water use per hectare 6 Economic analysis 7. Farm budgets at full development 8. Audit 9. Disposition of contracts as of Juen 30, 1986 10. Characteristics, total and unit costs of equipment 11. Improvement of classified road network MAP: FAO/CP Hap Doukkala II Project - General Location  MOROCCO PROJECT COMPLETION REPORT DOURKALA II IRRIGATION PROJECT (Loan 1416-MOR) PREFACE This is the PCR of the Morocco Doukkala II project for which Loan 1416-MOR in the amount of US$41.0 million was approved on April 12, 1977. The original closing date was June 30, 1984; the actual closing date was June 30, 1986. In 1985, US$3.0 million was cancelled as part of the Special Action Programme. Final disbursement was made on January 21, 1987, and US$3.33 million of the loan was cancelled. The project was the second and final development phase of the "'lw-service' perimeter of the Oum-er-Rbia river basin. In addition to the Doukkala II Irrigation Project, the Bank Group has financed seven other irrigation projects, of which one was the Doukkala I Irrigation Project. This PCR was prepared by the Regional Agricultural Development Office for Doukkala (ORP4VAD) with the assistance of the FAO/World Bank Cooperative Programme (FAO/CP). It was approved and sent forward by the Europe, Middle East and North Africa Regional Office to OED, where the decision was taken not to subject the project to further evaluation.  - i - MOROCCO PROJECT COMPLETION REPORT DOUKKAIA II IRRIGATION PROECT (Loan 1416-M0R) BASIC DATA SHET A - Ke project data Apraisal Actual Agvraisal estimates estimates Total groiect cost - USmillion 121.0 77.4 64 - DH million 532.3 543.9 104 Rate of cost decrease - - 26 Amount of loan (US$ million) 41.0 - _ - Disbursed (30.6.86) - 34.7 83 - Cancelled - 3.0 7 - Reimbursed - - - Pending - 3.3 8 Physical components Ilementation date Dec. 1982 Juna 1986 161 Economic rate of return 11.6 18.7 Financial performance good Institutional performance good B - Other project dati Original Plan Achieved First mention of project in files or calendars - . 23/05/1974 Negotiations Approval by the Bankls Board of Governors 04/12/1977 Date of Loan Agreement 16/06/1977 Closing date 30 06 84 30/06/86 Borrower Kingdom of Morocco Implementing agency ORMNAD Roads Directorate Borrower's fiscal year January 1 - Deceaber 31  - iii - C - Hission data Missions Date No. of /d SPecialization Rate of Trend TyPe of Mo. Yr. people represent erformance o Appraisal 10 76 3 72 eFc,i Implementation 12 77 Supervision I 08 77 2 4 i,e 1 2 - Supervision II 02 78 1 4 i 1 1 - Supervision III 06 78 2 6 i,a 1 2 F Supervision IV 12 78 1 2 i 2 3 F Supervision V 11 79 2 8 i.i 2 2 F Supervision VI 7 80 2 6 e,i 2 1 0 Supervision VII 6 81 2 8 i,i 1 1 0 Supervision VIII 11 81 1 4 i 1 1 0 Supervision Ix 11 82 1 4 i 1 2 F Supervision X 8 83 1 2 i 2 2 F Supervision XI 3 84 2 12 aa,i 2 1 F Supervision XII 11 85 1 4 i 1 1 F canpletion 9 86 2 22 e,i Total: 158 man-days (or 31.6 man-weeks) j/ a = agronomist: e = econrmist; i a engineer: ^a a administrative assistant. s/ P + financial; G - management; T u technical: P a political; 0 other. CURRCY EpIVALENTS Currency unit Dirham (DH) Exchange rates: Average during appraisal year US$ 1 = 4.41 DH Rates during project period 1977 I 1= 4.57 DH 1978 J 1a 4.05 DH 1979 U 1 3.87 DH 1980 U 1 = 3.78 DH 1981 U 1 - 5.00 DH 1982 U 1 5.78 DH 1983 U 1 = 7.14 DH 1984 U 1 8.73 DH 1985 U 1 =10.50 DH 1986 (year of coMpletion) U 1 a 9.42 DH Weighted average (1977-86) U 1 a 7.00 OH  - iv - KINGDOM OF MOROCCO DOUKKALA II IIRIGATION PROJECT PROJECT COMPLETION REPORT EVALUATION SUMMARY 1.1 General. The Doukkala II irrigation project was appraised in October 1976 and a loan of US$41 mdllion was granted in 1976 to finance the project, which was successfully completed in June 19861x By the end of June 1986 same US$ 35 million had been disbursed and US$3.0 million cancelled in 1985 as part of the special action programme. 1.2 The projtect area lies to the southwest of the Oum-er-Rbia river basin in a semi-arid zone characterized by highly variable, low rainfall, light winds, irregular topography and shallow soils. These conditions resulted in a decision that the project area should be sprinkler irrigated. The project was formulated with the assistance of the FAO/IBRD cooperative programme, on the basis of feasibility studies and detailed engineering studies of part of the project carried out by consultants. Together with the Doukkala I project, completed in 1981 (1201-M0R), this project . represents the final phase of investments to maximize.the use of the water resources mobilized by the main "low service' canal, which carries water from the Im Fout reservoir on the Oum-er-Rbia. 1.3 Formulation. At the time of the appraisal, the project consisted. of the following elements: (i) land consolidation, the building of farm roads, windbreaks and drainage; (ii) construction of a sprinkler irrigation system covering 16,600 ha; (iii) enlargement of the main low service channel; (iv) construction of six pumping stations and power-lines; (v) improvement of main highways; (vi) construction of an infrastructure for extension services and village centres; (vii) on-farm development: construction of cow sheds, purchase of Friesian cattle and farm equipment financed by medium-term credit; and (viii) studies and technical assistance. The main problems identified during the appraisal involved: (i) recovery of operating, maintenance and investment costs through water charges and a betterment levy; (ii) establishment of annual prograwnes in applied research at the Agricultural Research Institute's experimental station near Zemamra; (iii) the establishment of a telecommunications /1f Some of the final work will be completed in 1987 (especially that involving classified roads, see Annex 11).  - v - network. Responsibility for the implementation of the project is divided between (i) the Regional Agricultural Development Office for Doukkala (a*MVD), for the construction the irrigation and drainage networks and farm roads; (ii) the Roads Directorate of the Ministry of Public Works for the main road network. 1.4 Design and ccove. There were no major changes in the technical design over the course of the project. The parameters applied in construction were the ones cited in the feasibility study and accepted .during appraisal. 1.5 All the works anticipated during appraisal have been completed, with the exception of the following: (1) construction of pipe manufacturing plant; (ii) installation of windbreaks; (iii) supply of tractors to the CMVs; (iv) infrastructure projects in the UREPs; and (v) procurement of public works equipment for maintaining the networks. 1.6 Prolect Lementation period. Most of the work on the project occurred over the six years between 1980 and 1986. After a delay of two years prior to startup, it was possible to ccmmission 9,400 ha in 1982 after two years of work and to maintain a rate of 1,750 ha for 4 years, reaching 16,400 ha in 1986. The total delay of 3 1/2 years in relation to the estimates contained in the loan agreemnt is due almost exclusively to the budgetary difficulties experienced by Morocco in 1978/79, the projected date for the startup of the works, and again in 1983, resulting in significant delays in constructing the Extensions. 1.7 Land consolidation and distribution. The consolidation operation was a ccmplete success. It has made possible (i) the creation of more viable family farms and the almost complete elimination of fragmentation; (ii) the allocation of an irrigoted plot to each family; and (iii) the allocation to more than two-thirds of the farmiers, of a lot on.which a house can be built in one of the new village centr?s (the remaining farmers will oontinue to live in their traditional villages). The consolidated farms have been successfully incorporated into the distribution system for irrigation water and consolidation was completed prior to the completion of the irrigation works. *The distribution of land according to the scale of the farming operations is characterized by the predominance of small farms. Average farm size is 2.2 ha, with 75% of the farms being smaller in acreage than the average. 1.8 Procurement. The goods and services required for the project have been provided or performed under the terms of 80 separate contracts, 64 for ORun D and 16 for the Provincial Roads Directorate. The value of the contracts open to international competitive bidding (ICB) represents 84% of the value of all contracts for the project, albeit only 54% of the total number. 1.9 Costs. Total actual project costs amounted to DH 544 million, or 18% more than the initial estimate. Expressed in dollars, however, actual costs are 26% lower than the initial estimate. While the cost of civil engineering works in dirhams differed only slightly from the appraisal figure, those of all kinds of equipment were 50% higher.  - vi - 1.10 Agricultural development. Since the equipment was put into service, development has taken off most satisfactorily and at present far exceeds the appraisal mission's forecasts. The West 1, West 2 and South (9,370 ha) sectors were comissiuned in November 1982, and the North sector (3,730 ha) in September 1984. The Sidi Smail (1,400 ha) and Faregh (1,900 ha) extension sectors will be commissioned in November 1986. 1.11 In 1985-85, all crops, including wheat, were grown under irrigation, with the crop intensity being high (107%) and most yields exceeding targets set during appraisal. All the crops planned were introduced with the exception of cotton, which has been gradually abardoned by all the farmers in the Doukkala area. Sugar beet, the development of which is accorded high priority by Government, has achieved ery high yields (55 t/ha), while yields of wheat and maize reached 4.0 t/ha in both cases. Soyabeans were introduced for the first time in 1985-86 with yields of 1.5 t/ha. The development of forage crops, on the other hand, has been relatively slow, hampered by the years of drought. Livestock raising has developed quite satisfactorily. The excellent performance of farm production can be attributed essentially to the following factors: (i) the predominance of small farms with very high crop intensity; (ii) the use of a large quantity of fertilizer and improved seed varieties; and (iii) the close monitoring of farmers by C(RM*VD and the Local Development Commission, whose role is to ensure adherence to cropping patterns and work schedules. According to recent projections compiled by ORMVAD, crop intensity will be 144% when development is ccmplete, instead of 141% anticipated during appraisal. The main changes at present anticipated in the cropping patterns, compared to the projections coVpiled for the appraisal, are the introduction of soyabeans, an expansion of output of sumier and winter vegetables, a reduction in the acreage of cereals planted and the abandonment of cotton as a crop. These revised projections appear reasonable in light of the results obtained in 1985-86. Full development of cereals, industrial crops and vegetables should be reached in 1989. Full development of forage crops will not be reached in 1991, as C(U4VAD had forecast, unless the extension effort is intensified to promote livestock-related activities in the project area. 1.12 Institutional asecs. As was the case in Doukkala I, aRMVAD's performaice in the iplemention of this project has been excellent. This is due primarily to the stability and the exceptional continuity in the project managemnt and to the calibre of the managers. However, all the problems related to the project's implementation were generally analyzed at the meetings of the Provincial Coordination Committee, at which representatives of all the ministries involved met once a month under the chairmanship of the Governor of the Province of El Jadida. Internal ORWVAD questions were dealt with at the meetings of the Office Technical Comnittee (Comite Technique de l'Office), which normaily took place once a quarter under the Governor's chairmanship. Since 1986 a standing coamittee on agricultural problems in.the province has met with the Governor on a weekly or bi-weekly basis.  - vii - ;.13 Operation and maintenance. The tletworks Management Service suffers fran insufficient budgetary resources to meet maintenance requirements. It has been established that funds on the order of 300 DH/ha should be allocated for operation and maintenance for the entire Doukkala perimeter, while the 1983 figure for actual disbursements was only 180 DH/ha (60%). Nevertheless, on the ground productivity per employee remains higher than in any other major irrigation area in North Africa. This may be due to the quality and responsibility given to farmers in the operation of the network within the irrigation blocs. The overall efficiency of the distribution network between the head gate structures and the hydrants was estimated at 75% in 1984-85. It must be noted that water use during the first year of irrigation in the Tnine Gharbia sectors was high, approaching the appraisal target for full development. It is also interesting to note that, since the regulations issued to deal with the shortage in 1983-84 had no significant impact on output, it would be desirable to envisage more rigorous management of the water resources in order to improve the return on the system now in place. Appropriate measures were instituted as part of the Large-scale Irrigation Improvement Project (PAGI). 1.14